QUESTION 12

You are considering buying Wesley-Townsend bonds that have an 825 percent coupon and pay interest annually. $1,000 and the current quoted price is 100, 16 Per bond. The bonds mature in 17 years. What is the annual yield to maturity? Will you buy the bond if you could get s percent from an alternative investment of similar risk? a. 7.82 percent: No, because the yield is less that 8 percent. b. 7.82 percent: Yes, because the yield is less that 8 percent. c. 8.20 percent; Yes, because the yield is more that 8 percent d. 8.20 percent; No, because the yield is more that 8 percent. e. 8.25 percent; Yes, because the yield is more that 8 percent